US tariff hike may impact Indian Pharma industry
New Delhi: The US government's proposed 25% tariff on imports of automobiles, semiconductors, and pharmaceuticals could have significant repercussions for India's pharmaceutical industry, which heavily depends on exports to the American market.
While India's semiconductor sector is still developing and is expected to see minimal impact, the new tariffs could pose challenges for drug manufacturers. The US is the largest market for Indian pharmaceutical exports, accounting for $8.73 billion in FY24, or 31% of the industry’s total exports, according to the Pharmaceuticals Export Promotion Council of India (Pharmexcil).
Leading Indian pharma companies such as Sun Pharma, Dr. Reddy’s, and Cipla derive a substantial portion of their revenue from the US market. In fiscal 2024, North America contributed 47% of Dr. Reddy’s total sales, 32% of Sun Pharma’s revenue, and 30% of Cipla’s earnings.
Pharmexcil’s director-general Raja Bhanu highlighted that Indian firms play a crucial role in the US pharmaceutical supply chain, supplying four out of every ten prescriptions filled in the country. However, Pharmexcil chairman Namit Joshi downplayed concerns, stating that the competitiveness of Indian generic drug exports would help mitigate the impact of any tariff hikes.
Currently, Indian pharmaceutical imports into the US are not subject to import duties. The proposed tariffs, if implemented, could alter the cost dynamics of the industry and affect profit margins for Indian drugmakers.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Israeli PM Netanyahu calls PM Modi; briefs on Gaza Peace Plan status
New Delhi (PTI): Prime Minister Narendra Modi on Wednesday received a phone call from his Israeli counterpart Benjamin Netanyahu, who shared an update on the Gaza Peace Plan and reaffirmed their shared resolve to fight terror.
"The two leaders warmly exchanged New Year greetings and wished the people of both countries peace and prosperity," a statement from the prime minister's office said.
It said Netanyahu briefed the prime minister on the implementation of the Gaza Peace Plan.
"The Prime Minister reaffirmed India's consistent support for efforts towards a just and durable peace in the region," the statement said.
ALSO READ: Two killed in boiler explosion at sugar factory in Karnataka
Modi and Netanyahu identified shared priorities to further strengthen the India-Israel Strategic Partnership in the year ahead, guided by shared democratic values, deep mutual trust and a forward-looking vision.
"They reiterated their zero-tolerance approach towards terrorism in all its forms and manifestations and reaffirmed their commitment to fight this menace," the statement said.
Modi and Netanyahu also exchanged views on regional and global issues of mutual interest and agreed to remain in touch.
In a post on X, Modi said they also reaffirmed their shared resolve to fight terrorism with greater determination.
"Glad to speak with my friend, Prime Minister Benjamin Netanyahu and convey New Year greetings to him and the people of Israel," Modi said.
"We discussed ways to further strengthen the India-Israel Strategic Partnership in the year ahead," he said.
